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Orthofix Medical Inc. (NASDAQ:OFIX) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of OFIX, it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Orthofix Medical here.
Flawless balance sheet with proven track record
Over the past few years, OFIX has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did OFIX outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 34% earnings growth. This is an optimistic signal for the future. OFIX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that OFIX has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Investors should not worry about OFIX’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Orthofix Medical, I’ve put together three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for OFIX’s future growth? Take a look at our free research report of analyst consensus for OFIX’s outlook.
- Valuation: What is OFIX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether OFIX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OFIX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.